Article 1741.

If the shipper or owner merely contributed to the loss, destruction or deterioration of the goods, the proximate cause thereof being the negligence of the common carrier, the latter shall be liable in damages, which however, shall be equitably reduced.
CONTRIBUTORY NEGLIGENCE
The contributory negligence of the passenger does not bar recovery of damages for his death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount of damages shall be equitably reduced. Are there exceptions to Article 1741 which provides: If the shipper or owner contributed to the loss, destruction, or deterioration of the goods, the proximate cause thereof being the negligence of the carrier, the latter shall be liable on damages, which however, shall be equitably reduced? Yes. In collision cases (moving object strikes another moving object) and allision cases (moving object strikes a stationary object). In such cases, the parties are liable for their own damage.

Article 1761. The passenger must observe the diligence of a good father of a family to avoid injury to himself. Article 1762. The contributory negligence of the passenger does not bar recovery of damages for his death or injuries, if the proximate cause thereof is the negligence of the common carrier, but the amount of damages shall be equitably reduced.

Payment of freight -

The consignee has 24 hours within which to pay the transportation charges following the time of delivery. In case of delay in making payment, the carrier may demand the judicial sale of the goods to answer for the transportation charges. (Art. 374) Under Art. 375, the transportation charges (during the transportation and until the time of delivery) have a lien on the goods. This preference of the carrier to payment shall not be affected by the insolvency of the consignee. This right shall prescribe after 30 days. If this right prescribes, the carrier will lose his lien over the property but he can still file an action as an ordinary creditor. In a combined services agreement, who shall be directly liable against the consignee and/or the shipper? (ART. 373) 1. The carrier which delivered the goods, the carrier who executed the transportation contract, or the carrier who received the goods transported without reservation shall be liable. 2. The carrier who made the delivery however has the right to go against the carrier who was the one at fault. Art. 375. The goods transported shall be especially obligated to answer for the transportation charges and for the expenses and fees caused by the same during their transportation and until the time of their delivery. This special right shall prescribe after eight days from the time of delivery, and once prescribed, the carrier shall have no further right of action than that corresponding to him as an ordinary creditor. Note: The eight days limitation is amended by Art. 2242 (9) of the New Civil Code providing as follows: With reference to a specific movable property of the debtor, the following claims or liens shall be preferred: credits for transportation, upon the goods carried, for the price of the contract and incidental expenses until their delivery and for thirty days thereafter. ART. 377. The carrier shall be liable for all the consequences arising from non-compliance on his part with the formalities prescribed by laws and regulations of the government during the entire course of the trip and on the arrival at the point of destination, except when his omission arises from his having been led into error by false statements of the shipper in the declaration of the merchandise.

If the carrier has acted in accordance with a formal order received from the shipper or consignee of the merchandise, both shall incur liability. The State can validly seize Philippine-registered vessels, even in the high seas, for violations of the Revised Administrative Code (or violation of Philippine law) in accordance with the States right to protect itself and its revenues and this right is not limited within its own territory. (Asaali v. Commissioner of Customs, L-24170, December 16, 1968) Requirement of extraordinary diligence rendition of service with the greatest skill and utmost foresight Rationale: 1. From the nature of the business and for reasons of public policy 2. Relationship of trust 3. Business is impressed with a special public duty 4. Possession of the goods 5. Preciousness of human life

But a common carrier is not an absolute insurer of all risks of travel.

Article 1744. A stipulation between the common carrier and the shipper or owner limiting the liability of the former for the loss, destruction, or deterioration of the goods to a degree less than extraordinary diligence shall be valid, provided it be: (1) In writing, signed by the shipper or owner; (2) Supported by a valuable consideration other than the service rendered by the common carrier; and (3) Reasonable, just and not contrary to public policy.
Article 1757. The responsibility of a common carrier for the safety of passengers as required in articles 1733 and 1755 cannot be dispensed with or lessened by stipulation, by the posting of notices, by statements on tickets, or otherwise. Article 1758. When a passenger is carried gratuitously, a stipulation limiting the common carrier's liability for negligence is valid, but not for wilful acts or gross negligence. Article 1760. The common carrier's responsibility prescribed in the preceding article cannot be eliminated or limited by stipulation, by the posting of notices, by statements on the tickets or otherwise.
SEAWORTHINESS - A ship is seaworthy, when reasonably fit to perform the service, and to encounter the ordinary perils of the voyage,contemplated by the parties to the policy. There should be due consideration to the nature of the ship, the voyage and the service to be performed. WHEN A SHIP SHOULD BE SEAWORTHY: An implied warranty of seaworthiness is complied with if the ship be seaworthy at the time of the commencement of the risk, except in the following cases:

1. TIME POLICY When the insurance is made for a specified length of time, the implied warranty is not complied with unless the vessel is seaworthy at the commencement of every voyage it undertakes during that time; 2. CARGO POLICY When the insurance is upon the cargo which, by the terms of the policy, description of the voyage, or established custom of trade, is to be transshipped at an intermediate port, at the commencement of each particular voyage;

3. VOYAGE POLICY Where different portions of the voyage are contemplated, at the commencement of each portion; 4. When the ship was seaworthy at the commencement of the voyage but becomes unseaworthy during the voyage to which an insurance related,and unreasonable delay in repairing the defect exonerates the insurer on ship or shipowners interest from liability from any loss arising therefrom. Overloading duty to exercise due diligence includes the duty to take passengers or cargoes that are within the carrying capacity of the vessel.

LIABILITY FOR BAGGAGE OF PASSENGERS

1. Passenger is considered a shipper insofar as the goods he carries on board. 2. Insofar as the goods in the immediate custody of the passenger, the captain is not responsible, unless the damage arises from his act or the crews (Art. 703). BILL OF LADING A written acknowledgment of receipt of goods, their quantity and condition, and an agreement to transport and deliver them to a specific place to a person named or his order. It is signed by the captain and shipper, and furnished to the consignee. NOTE: It is not indispensable to the creation of a contract of carriage. The contract itself arises from the moment goods are delivered by shipper to carrier and the carrier agrees to carry them.

LIABILITY OF SHIP OWNERS AND SHIP AGENTS

PERSONS PARTICIPATING IN MARITIME COMMERCE (SCOS) 1. SHIP OWNER AND/OR SHIP AGENT. A ship agent is the person entrusted with the provisioning of a vessel or who represents her in the port in which she may be found. 2. CAPTAIN OR MASTER. He is the person in charge of the vessel and navigates it. 3. OTHER OFFICERS of the vessel (i.e. sailing mate, second mate, third mate, marine engineer) 4. SUPERCARGO. He is the person specially employed by the owner of a cargo to take charge of and sell to the best advantage merchandise which has been shipped, and to purchase returning cargoes and to receive freight, as he may be authorized. SHIP CAPTAIN AND SHIP AGENT ROLES OF THE CAPTAIN 1. General agent of the ship owner 2. Technical director of the vessels 3. Represents the government of the country under whose flag he navigates QUALIFICATIONS OF THE CAPTAIN 1. Filipino citizen 2. With skill and capacity to command and direct vessel 3. Duly licensed by MARINA CIVIL LIABILITIES OF THE CAPTAIN 1. Damage to vessel due to lack of skill/negligence 2. Theft, robberies, mutiny by crew 3. Abuse of power 4. Unjustified deviation

5. Losses, fines and confiscation imposed due to violation of law and regulations ROLES OF THE SHIP AGENT 1. Entrusted with provisioning vessel 2. Represents vessel in port where she is 3. Represents ship owner in judicial/extrajudicial acts LIABILITIES OF SHIP OWNERS AND SHIP AGENTS 1. Civil liability for the acts of the captain 2. Civil liability for contracts entered into by the captain to repair, equip and provision the vessel, provided that the amount claimed was invested for the benefit of the vessel 3. Civil liability for indemnities in favor of 3rd persons which may arise from the conduct of the captain in the care of the goods which the vessel carried, as well as for the safety of the passengers transported 4. Damages in case of collision by reason of the fault, negligence or lack of skill of captain or any of the complement. NOTE: Ship owner/agent not liable for the obligations contracted by the captain if the latter exceeds his powers and privileges inherent in his position of those which may have been conferred upon him by the former. However, if the amount claimed were made use of for the benefit of the vessel, the ship owner or ship agent is liable. PERIOD TO DELIVER GOODS WHEN NOT STIPULATED ART. 358. Should there be no period of time previously fixed for the delivery of the goods, the carrier shall be under the obligation to forward them with the first shipment of the same or similar merchandise he may make to the point where he must deliver them, and should he not do so, the damages occasioned by the delay shall be suffered by him. CHANGE OF ROUTE GENERAL RULE: The carrier cannot change the route to be taken by the vessel. Art. 359 of the Code EXCEPTION: The route which the carrier and the shipper have agreed upon may be changed by reason of force majeure, in which case, the carrier will be obliged to take another route and any increase in the transportation charges shall be reimbursable to him. NOTE: However, if the carrier changes the route without just cause, the carrier shall be liable for all damages which may be suffered by the goods. NOTE: If no route was agreed upon, carrier must select the shortest, least expensive and practically passable route (Art. 1747) BILL OF LADING AS EVIDENCE Art. 353. The legal evidence of the contract between the shipper and the carrier shall be the bills of lading, by the contents of which all disputes which may arise with regard to their execution and fulfillment shall be decided, NO EXCEPTIONS BEING ADMISSIBLE OTHER THAN FALSITY AND MATERIAL ERROR IN THE DRAFTING THEREOF After the contract has been complied with, the bill of lading shall be returned to the carrier who may have issued it, and by virtue of the exchange of this bill for the object transported, the respective obligations and actions shall be considered as cancelled, unless in the same act the claims which the contracting parties desire to reserve are manifested in writing, exception being made of the provisions of Article 366. In case the consignee cannot return, upon receiving the merchandise, the bill of lading subscribed by the carrier, due to its loss or for any other cause, he must give the said carrier a receipt for the goods delivered, this receipt producing the same effect as the return of the bill of lading. UPON THE CARRIER RESTS THE BURDEN OF PROOF to establish the actual delivery of the merchandise called for in the bill of lading. IN THE ABSENCE OF A BILL OF LADING, respective claims can be determined by legal proofs or other documents signed by the consignee.. ART. 350. The shipper as well as the carrier of merchandise of effects may mutually demand of each other the issue of a bill of lading in which there shall be stated: The name, surname, and domicile of the shipper.

The name, surname, and domicile of the carrier. The name, surname and domicile of the person to whom or to whose order the effects are sent, or whether such effects are to be delivered to the bearer of said bill. The description of the effects, with statement of their kind, weight, and the exterior marks or signs of the packages containing the same. The cost of transportation The date on which shipment is made The place of delivery to the carrier The place and time of delivery to the consignee. The indemnity to be paid by the carrier in case of delay, should there be any agreement on this point.

Article 1745. Any of the following or similar stipulations shall be considered unreasonable, unjust and contrary to public policy: (1) That the goods are transported at the risk of the owner or shipper; (2) That the common carrier will not be liable for any loss, destruction, or deterioration of the goods; (3) That the common carrier need not observe any diligence in the custody of the goods; (4) That the common carrier shall exercise a degree of diligence less than that of a good father of a family, or of a man of ordinary prudence in the vigilance over the movables transported; (5) That the common carrier shall not be responsible for the acts or omission of his or its employees; (6) That the common carrier's liability for acts committed by thieves, or of robbers who do not act with grave or irresistible threat, violence or force, is dispensed with or diminished; (7) That the common carrier is not responsible for the loss, destruction, or deterioration of goods on account of the defective condition of the car, vehicle, ship, airplane or other equipment used in the contract of carriage.

Article 1508. A negotiable document of title may be negotiated by delivery: (1) Where by the terms of the document the carrier, warehouseman or other bailee issuing the same undertakes to deliver the goods to the bearer; or (2) Where by the terms of the document the carrier, warehouseman or other bailee issuing the same undertakes to deliver the goods to the order of a specified person, and such person or a subsequent indorsee of the document has indorsed it in blank or to the bearer.

Where by the terms of a negotiable document of title the goods are deliverable to bearer or where a negotiable document of title has been indorsed in blank or to bearer, any holder may indorse the same to himself or to any specified person, and in such case the document shall thereafter be negotiated only by the indorsement of such indorsee. (n)

Article 1509. A negotiable document of title may be negotiated by the indorsement of the person to whose order the goods are by the terms of the document deliverable. Such indorsement may be in blank, to bearer or to a specified person. If indorsed to a specified person, it may be again negotiated by the indorsement of such person in blank, to bearer or to another specified person. Subsequent negotiations may be made in like manner. (n) Article 1510. If a document of title which contains an undertaking by a carrier, warehouseman or other bailee to deliver the goods to bearer, to a specified person or order of a specified person or which contains words of like import, has placed upon it the words "not negotiable," "nonnegotiable" or the like, such document may nevertheless be negotiated by the holder and is a negotiable document of title within the meaning of this Title. But nothing in this Title contained shall be construed as limiting or defining the effect upon the obligations of the carrier, warehouseman, or other bailee issuing a document of title or placing thereon the words "not negotiable," "non-negotiable," or the like. (n) Article 1513. A person to whom a negotiable document of title has been duly negotiated acquires thereby: (1) Such title to the goods as the person negotiating the document to him had or had ability to convey to a purchaser in good faith for value and also such title to the goods as the person to whose order the goods were to be delivered by the terms of the document had or had ability to convey to a purchaser in good faith for value; and (2) The direct obligation of the bailee issuing the document to hold possession of the goods for him according to the terms of the document as fully as if such bailee had contracted directly with him. (n) Article 1515. Where a negotiable document of title is transferred for value by delivery, and the indorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to indorse the document unless a contrary intention appears. The negotiation shall take effect as of the time when the indorsement is actually made. (n)